Posted: Jul 15, 2020 at 3:59 am ET
European stocks rose Wednesday, and US equity futures also rose as investors accepted positive news about a candidate for the coronavirus vaccine.
The Stoxx Europe 600 Index
FXXP00
It was up 0.8% after a 0.8% loss on Tuesday. The index is barely positive for the week. Elsewhere, the German DAX
DAX
gained 0.8% and the French CAC
PX1
it was up 0.9%. The FTSE 100
UKX
it was up 0.8%.
After the close of US markets on Tuesday, the Modern biotech group
MRNA
He said his coronavirus vaccine candidate produced a “robust” immune system response in a larger group of people, and the study will move to a landmark clinical trial in July.
“Although the mismatch between the financial markets and the real economy remains in full effect, the removal of a single recessive input (the virus) through a vaccine may pave the way for a rapid economic recovery,” said Stephen Innes, chief strategist for global markets at AxiCorp.
“So the positive news about the virus vaccine can go a long way toward explaining the dissonance between the change in stock market sentiment regarding distress on Main Street,” Innes added, in a note to clients.
Later optimism was seen spreading to Wall Street, with Dow futures
YM00
up to 241 points, S&P 500 futures
ES00
Nasdaq-100 futures and 0.7% rise
QMI
up to 0.4%. US stocks closed near session highs on Tuesday, prompted by a call by Federal Reserve Governor Lael Brainard for the bank to make sustained large-scale asset purchases to help the economy recover amid a ” thick fog of uncertainty “caused by COVID-19.
Shares in Asia fell, with CSI 300
000300
It fell 1.2% amid concerns over the tension between the United States and China. President Donald Trump said Tuesday that he signed a China sanctions bill aimed at the Beijing crackdown in Hong Kong,
Goldman Sachs
GS
and UnitedHealth
UNH
will report earnings on Wednesday, while Europe also received a handful of corporate updates.
ASML Holding NV shares very heavy
ASML
It fell 0.9% after the microchip equipment maker reported a strong gain in second-quarter earnings, driven by higher sales, but the latter did not meet analyst expectations. The company said its 2020 growth outlook remains unchanged from the start of the year despite the coronavirus pandemic.
Burberry Group PLC
BRBY
It was the biggest decline on the Stoxx 600, 5% less after the British fashion brand reported a 45% drop in first-quarter sales, and second-quarter sales are expected to drop between 15% and 20%.
Atlantia Actions
ATL
It increased 20% after the highway operator of Italian holding company Autostrade per l’Italia made a last-attempt offer to salvage its license, under threat of being stripped by the government after the collapse of a bridge in Genoa in 2018.
Citing sources, Reuters reported that Autostrade’s offer would consist of state lender Depositi e Prestiti (CDP) taking a 51% stake in Autostrade through a capital increase. Atlantia would eventually cede ownership of Autostrade.
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